A

A REPORT
on
Product/Service design from customer requirement
perspective in FMCG Products of Hindustn !ni"ever
#td$%
S!&M'TTE( ') PART'A# F!#F'##ME)T FOR THE
A*AR( OF THE
(EGREE OF &ACHE#OR OF &!S')ESS
A(M')'STRAT'O)
!)(ER THE G!'(A)CE OF
(r$ Amit Gupt
Project Co-ordinator
S!&M'TTE( &+,
-'P!#
&tc. BBA III (A)
TA&#E OF CO)TESTS
1) Acknowledgement
2) Preface
3) Certificate of originality
4) Eec!ti"e #!mmary
$) %&jecti"e of re'earc(
)) Com*any Profile
+) ,e'earc( *ro&lem and it' rele"ance
-) ,e'earc( .et(odology
/) Concl!'ion
10) Bi&liogra*(y
11)1!e'tionnaire
AC/)O*#E(GEME)T
A' any one w(o (a' written a *roject work2 or re'earc( work2 it i' 3!ite im*o''i&le A' any one w(o (a' written a *roject work2 or re'earc( work2 it i' 3!ite im*o''i&le
to acknowledge &y name e"ery indi"id!al w(o (a' *layed 'ome *art in t(i' work4 I to acknowledge &y name e"ery indi"id!al w(o (a' *layed 'ome *art in t(i' work4 I
feel it diffic!lt to e*re'' in word' my *rofo!nd 'en'e of gratit!de to mo't feel it diffic!lt to e*re'' in word' my *rofo!nd 'en'e of gratit!de to mo't
re'*ected *er'on' w(o (el*ed me to make t(i' work *o''i&le4 re'*ected *er'on' w(o (el*ed me to make t(i' work *o''i&le4
I acknowledge my gratit!de to re'*ected fac!lty .' Poonam .allik 5 .' I acknowledge my gratit!de to re'*ected fac!lty .' Poonam .allik 5 .'
6andana #(arma 6andana #(arma w(o (a"e &een kind eno!g( to '!gge't im*ro"ement of t(i' work w(o (a"e &een kind eno!g( to '!gge't im*ro"ement of t(i' work
and make it &road2 &a'ed4 and make it &road2 &a'ed4
I wo!ld like to t(ank my center (ead .ajor 7en4 64 #4 8ada" jai*!r and 9EA. %: I wo!ld like to t(ank my center (ead .ajor 7en4 64 #4 8ada" jai*!r and 9EA. %:
;I<=>#9A< ><I?E6E, ?9=4 for t(eir '!**ort and enco!ragement4 :inally of ;I<=>#9A< ><I?E6E, ?9=4 for t(eir '!**ort and enco!ragement4 :inally of
co!r'e great de&t' are owed to my all-friend' w(o'e w(ole(earted '!**ort (a' co!r'e great de&t' are owed to my all-friend' w(o'e w(ole(earted '!**ort (a'
gi"en me t(e in'*iration and dedication to com*lete t(i' work4 gi"en me t(e in'*iration and dedication to com*lete t(i' work4

-'P!# -'P!#

PREFACE PREFACE
:a't .o"ing Con'!mer 7ood' *o*!larly known :.C7 i' a' t(e name '!gge't' i' :a't .o"ing Con'!mer 7ood' *o*!larly known :.C7 i' a' t(e name '!gge't' i'
t(e mo't demanded *rod!ct' in t(e market4 It incl!de' e"ery t(ing from food item' t(e mo't demanded *rod!ct' in t(e market4 It incl!de' e"ery t(ing from food item'
like flo!r2 &i'c!it'2 ice cream'2 etc to &ody *rod!ct' 'oa*'2 face cream' to cigarette' like flo!r2 &i'c!it'2 ice cream'2 etc to &ody *rod!ct' 'oa*'2 face cream' to cigarette'
to &e"erage'2 etc4 con'!mer' need t(e'e t(ing' in t(eir e"eryday life 'o t(ey in"e't' to &e"erage'2 etc4 con'!mer' need t(e'e t(ing' in t(eir e"eryday life 'o t(ey in"e't'
a good *ortion of t(ere income in t(e'e t(ing'4 9(ere are 'o many com*anie' a good *ortion of t(ere income in t(e'e t(ing'4 9(ere are 'o many com*anie'
w(ic( are dealing in :.C7 *rod!ct' like ;>?2 =a&!r2 Ca"in Care2 A.>? w(ic( are dealing in :.C7 *rod!ct' like ;>?2 =a&!r2 Ca"in Care2 A.>?
dealing in dairy *rod!ct'2 etc4 By t(e "ary nat!re of t(e *rod!ct t(e com*anie' are dealing in dairy *rod!ct'2 etc4 By t(e "ary nat!re of t(e *rod!ct t(e com*anie' are
'eeing t(i' a' a great 'o!rce of income4 A' large n!m&er of com*anie' are looking 'eeing t(i' a' a great 'o!rce of income4 A' large n!m&er of com*anie' are looking
t(i' 'ector a' a *rofita&le "ent!re2 'o for '!'taining t(ere *o'ition and gain new t(i' 'ector a' a *rofita&le "ent!re2 'o for '!'taining t(ere *o'ition and gain new
market t(ey (a"e to &ring 'ome t(ing !ni3!e in t(ere *rod!ct' or 'er"ice' to gain market t(ey (a"e to &ring 'ome t(ing !ni3!e in t(ere *rod!ct' or 'er"ice' to gain
*o'ition in t(e market or to '!'tain t(ere4 *o'ition in t(e market or to '!'tain t(ere4
In t(i' *roject my foc!' i' on tracking down t(e c(anging re3!irement'2 In t(i' *roject my foc!' i' on tracking down t(e c(anging re3!irement'2
*reference'2 need' of c!'tomer' and t(eir c(anging *er'*ecti"e on t(e different *reference'2 need' of c!'tomer' and t(eir c(anging *er'*ecti"e on t(e different
*rod!ct' offered *rod!ct' offered
E0EC!T'-E S!MMAR+
9(e main o&jecti"e of t(e *roject i' to get t(e f!ll knowledge of t(e *rod!ct' of t(e
;>? and w(at are t(ey doing to get t(e c!'tomer loyalty2 to maintain t(ere market4
9(i' i' al'o to find t(e *reference' of c!'tomer and t(ere market knowledge and
*rod!ct information2 information a&o!t t(e *re'ence of t(e ri"al' of ;>? and all
t(e ot(er o*tion' t(ey (a"e in t(e market4 @(at are t(e tec(ni3!e' t(ey ado*t to
know a&o!t t(e *reference' and c(anging need' of t(e c!'tomerA
;>? are al'o looking to ta* t(e market in r!ral 'ector2 'o t(ey al'o taking into
con'ideration t(e need' and want' of t(e *eo*le t(ere4 9(ey are al'o 't!dying t(e
con'!m*tion (a&it' of t(e r!ral *eo*le4 ?ike mo't of t(em are daily wage earner'
or 'mall *ea'ant'2 'o t(ey are 't!dying t(e &!ying *attern' of t(em al'o4







O&1ECT'-E OF THE RESEARCH
9(e main o&jecti"e of t(i' *roject i' to find2 w(at are t(e 'te*' ;ind!'tan >nile"er
?td4 i' ada*ting to &e market leader and to differentiate it'elf from it' com*etitor'4
@(at i' t(e 'te*' com*any i' !tiliBing to find c!rrent trend in t(e marketA
.o't of t(e *rod!ct of ;>? come' in t(e category of con"enience *rod!ct'4 9(ey are
fre3!ently !'ed and &o!g(t &y t(e c!'tomer'4 9(ere i' large no4 of *layer' in t(e
market2 w(o are '!**lying 'imilar *rod!ct to t(e c!'tomer'4
<ow2 c!'tomer' (a"e &ecome 'mart2 t(ey (a"e great knowledge of market2 *rod!ct
and '!**lier'4 #o2 t(ey are looking for t(e *rod!ct w(ic( i' *ro"iding 'omet(ing
etra4
;>? (a' a wide range of *rod!ct in :.C7 'ector2 co"ering almo't e"ery need' and
want' of t(e c!'tomer'4 It (a' *rod!ct' for c(ild2 yo!ng 5 ad!lt2 male 5 female2 etc4
'o2 it (a' to differentiate it' *rod!ct' taking into acco!nt t(e need' and demand' of all
t(e 'ector' of t(e 'ociety4
<ot2 only *rod!ct &!t it (a' to look !*on t(e 'er"ice' and feed &ack from c!'tomer'
al'o4 It '(o!ld do 'omet(ing to gi"e after 'ale' 'er"ice and collect feed &ack from t(e
c!'tomer'4
9(e &a'ic o&jecti"e of t(i' *roject i' a' mentioned a&o"e to find way' 'o t(at ;>?
remain market leader &y con'idering all t(e need' 5 want' and f!lfilling t(eir
demand4

COMPA)+ PROF'#E
Compn23s &c4ground
;ind!'tan >nile"er ?imited (;>?) i' IndiaC' large't :a't .o"ing Con'!mer 7ood'
Com*any2 to!c(ing t(e li"e' of two o!t of t(ree Indian' wit( o"er 20 di'tinct
categorie' in ;ome 5 Per'onal Care Prod!ct' and :ood' 5 Be"erage'4 9(ey endow
t(e com*any wit( a 'cale of com&ined "ol!me' of a&o!t 4 million tonne' and 'ale' of
,'4102000 crore'4

;>? i' al'o one of t(e co!ntryC' large't e*orter'D it (a' &een recogniBed a' a 7olden
#!*er #tar 9rading ;o!'e &y t(e 7o"ernment of India4

9(e mi''ion t(at in'*ire' ;>?C' o"er 1$2000 em*loyee'2 incl!ding o"er 12300
manager'2 i' to Eadd "itality to life4E ;>? meet' e"eryday need' for n!trition2
(ygiene2 and *er'onal care wit( &rand' t(at (el* *eo*le feel good2 look good and get
more o!t of life4 It i' a mi''ion ;>? '(are' wit( it' *arent com*any2 >nile"er2 w(ic(
(old' $14$$F of t(e e3!ity4 9(e re't of t(e '(are(olding i' di'tri&!ted among 3-02000
indi"id!al '(are(older' and financial in'tit!tion'4

;>?C' &rand' - like ?ife&!oy2 ?!2 #!rf Ecel2 ,in2 @(eel2 :air 5 ?o"ely2 PondC'2
#!n'ilk2 Clinic2 Pe*'odent2 Clo'e-!*2 ?akme2 Brooke Bond2 Gi''an2 Gnorr-
Anna*!rna2 Gwality @allC' H are (o!'e(old name' acro'' t(e co!ntry and '*an many
categorie' - 'oa*'2 detergent'2 *er'onal *rod!ct'2 tea2 coffee2 &randed 'ta*le'2 ice
cream and c!linary *rod!ct'4 9(ey are man!fact!red o"er 40 factorie' acro'' India4
9(e o*eration' in"ol"e o"er 22000 '!**lier' and a''ociate'4 ;>?C' di'tri&!tion
network com*ri'ing a&o!t 42000 redi'tri&!tion 'tocki't'2 co"ering )43 million retail
o!tlet' reac(ing t(e entire !r&an *o*!lation2 and a&o!t 2$0 million r!ral con'!mer'4

;>? (a' traditionally &een a com*any2 w(ic( incor*orate' late't tec(nology in all it'
o*eration'4 9(e ;ind!'tan >nile"er ,e'earc( Centre (;?,C) wa' 'et !* in 1/$-2 and
now (a' facilitie' in .!m&ai and Bangalore4 ;?,C and t(e 7lo&al 9ec(nology
Center' in India (a"e o"er 200 (ig(ly 3!alified 'cienti't' and tec(nologi't'2 many
wit( *o't-doctoral e*erience ac3!ired in t(e ># and E!ro*e4

;>? &elie"e' t(at an organiBationI' wort( i' al'o in t(e 'er"ice it render' to t(e
comm!nity4 ;>? i' foc!'ing on (ealt( 5 (ygiene ed!cation2 women em*owerment2
and water management4 It i' al'o in"ol"ed in ed!cation and re(a&ilitation of '*ecial or
!nder*ri"ileged c(ildren2 care for t(e de'tit!te and ;I6-*o'iti"e2 and r!ral
de"elo*ment4 ;>? (a' al'o re'*onded in ca'e of national calamitie' J ad"er'itie' and
contri&!te' t(ro!g( "ario!' welfare mea'!re'2 mo't recent &eing t(e "illage &!ilt &y
;>? in eart(3!ake affected 7!jarat2 and relief 5 re(a&ilitation after t(e 9'!nami
ca!'ed de"a'tation in #o!t( India4

In 20012 t(e com*any em&arked on an am&itio!' *rogramme2 #(akti4 9(ro!g( #(akti2
;>? i' creating micro-enter*ri'e o**ort!nitie' for r!ral women2 t(ere&y im*ro"ing
t(eir li"eli(ood and t(e 'tandard of li"ing in r!ral comm!nitie'4 #(akti al'o incl!de'
(ealt( and (ygiene ed!cation t(ro!g( t(e #(akti 6ani Programme2 and creating acce''
to rele"ant information t(ro!g( t(e i#(akti comm!nity *ortal4 9(e *rogram now
co"er' 1$ 'tate' in India and (a' o"er 312000 women entre*rene!r' in it' fold2
reac(ing o!t to 1002000 "illage' and directly reac(ing to 1$0 million r!ral con'!mer'4
By t(e end of 20102 #(akti aim' to (a"e 1002000 #(akti entre*rene!r' co"ering
$002000 "illage'2 to!c(ing t(e li"e' of o"er )00 million *eo*le4

;>? i' al'o r!nning a r!ral (ealt( *rogramme H ?ife&!oy #wa't(ya C(etana4 9(e
*rogramme endea"or' to ind!ce ado*tion of (ygienic *ractice' among r!ral Indian'
and aim' to &ring down t(e incidence of diarr(ea4 It (a' already to!c(ed +0 million
*eo*le in a**roimately 1$000 "illage' of - 'tate'4 9(e "i'ion i' to make a &illion
Indian' feel 'afe and 'ec!re4

If ;ind!'tan >nile"er 'traddle' t(e Indian cor*orate world2 it i' &eca!'e of &eing
'ingle-minded in identifying it'elf wit( Indian a'*iration' and need' in e"ery walk of
life4










M'SS'O)


>nile"erC' mi''ion i' to add 6itality to life4 @e meet e"eryday need' for n!trition2
(ygiene and *er'onal care wit( &rand' t(at (el* *eo*le feel good2 look good and get
more o!t of life4
%!r dee* root' in local c!lt!re' and market' aro!nd t(e world gi"e !' o!r 'trong
relation'(i* wit( con'!mer' and are t(e fo!ndation for o!r f!t!re growt(4 @e will
&ring o!r wealt( of knowledge and international e*erti'e to t(e 'er"ice of local
con'!mer' - a tr!ly m!lti-local m!ltinational4
%!r long-term '!cce'' re3!ire' a total commitment to ece*tional 'tandard' of
*erformance and *rod!cti"ity2 to working toget(er effecti"ely2 and to a willingne'' to
em&race new idea' and learn contin!o!'ly4
9o '!cceed al'o re3!ire'2 we &elie"e2 t(e (ig(e't 'tandard' of cor*orate &e(a"ior
toward' e"eryone we work wit(2 t(e comm!nitie' we to!c(2 and t(e en"ironment on
w(ic( we (a"e an im*act4
9(i' i' o!r road to '!'taina&le2 *rofita&le growt(2 creating long-term "al!e for o!r
'(are(older'2 o!r *eo*le2 and o!r &!'ine'' *artner'







5,Orgni6tion" Structure,5


14 C.ir Mn .r4 ;ari'( .anwani
24 CEO 7 Mnging (irector .r4 =o!gla' Baillie
3. Finnce 7 'T (irector .r4 =4 #!ndaram
4. E8ecutive (irector .r4 <itin Paranj*e
$4 (irectors
I$ .r4 #anji" Gakkar
II4 .r4 A4 <arayan
III4 .r4 64 <arayanan
I64 .r4 =4 #4 Parek(
64 .r4 C4 G4 Pra(alad
6I4 .r4 #4 ,amadorai






RESEARCH PRO&#EM A)( 'TS RE#E-A)CE
RESEARCH PRO&#EM
;>? i' facing t(e *ro&lem rat(er c(allenge' from
?arge no4 of *layer' in t(e market
Contin!o!' c(ange' in t(e ta'te and *reference' of t(e c!'tomer'
#!c( *ro&lem' were identified a' ,e'earc( Pro&lem' and t(e o&jecti"e 'tatement wa'
formed on it' &a'i'4
RE#E-A)CE OF THE RESEARCH
9(e rele"ance of t(e re'earc( i' to find o!t
Acce*ta&ility among t(e c!'tomer'
Promotional analy'i'
SCOPE OF THE RESEARCH
9(e 'co*e of t(e re'earc( (a' &een limited to t(e KAIP>, City4
Gee*ing in mind t(e o&jecti"e 'tated2 3!e'tionnaire wa' de'igned for t(e *eo*le4
#!&'e3!ently a re'earc( wa' cond!cted4
RESEARCH METHO(O#OG+,
9(ere i' large no4 of :.C7 com*anie' in t(e market2 to find t(e defining 'trategie'
!'ed2 t(e met(odology !'ed i' inter"iew and '!r"ey met(od4
(t Co""ection Met.od L
:or t(i' re'earc( 't!dy2 *rimary data a' well a' 'econdary data wa' collected4
Primr2 (t (a' &een collected t(ro!g( *er'onal contact4 :or t(i' *!r*o'e &ot(
questionnire and one5on5one intervie9 wa' con'idered wit( t(e con'!mer'2 '(o*
owner' and di'tri&!tor' 5 '!**lier' of t(e com*any4
Secondr2 dt (a' collected from magaBine'2 new'*a*er2 com*any literat!re and
we&'ite'4
(t n"2sis,
AnalyBing code' to eac( 3!e'tion were awarded4 9(ereafter e"ery 3!e'tionnaire wa'
written4 After w(ic( t(e data were analyBed4
.AK%, :I<=I<7#
M:or competitors
14 =a&!r
24 K(and!
34 Ko(n'on 5Ko(n'on
44 Ca"in Care
$4 Procter 5 7am&le
)4 Britannia
+4 I9C
-4 7illette
.E9;%=%?%78 :%, ,E#EA,C; P,%B?E.
:ollowing 'te*' w(ere taken in to con'ideration2 to identify t(e re'earc( *ro&lem-
;$ 'nform" investigtion
6i'it to t(e '(o* owner'2 talked to t(e di'tri&!tor' and to t(e con'!mer'
in t(e locality and '!rro!nding area'4
<$ E8tern" nd 'ntern" An"2sis
>nder'tanding c!'tomer *ro&lem
>nder'tanding t(e market 'tr!ct!re
=$ Sitution" An"2sis
9a'te' 5 *reference'
<eed' 5 income
.ajor Com*etitor'
I9C
=a&!r
Procter 5 7am&le
Ca"in Care
Am!l
Ko(n'on 5 Ko(n'on2 etc
A Com*re''i"e 't!dy of #econdary and Primary data (Informal Inter"iew') wa'
collected t(ro!g( '*ecific 3!e'tionnaire' for *eo*le and '(o*-owner' 5 di'tri&!tor'4
SAMP#')G TECH)'>!E
:or my '!r"ey I !'ed C"uster Smp"ing tec(ni3!e4 I 'elected a 'am*le of 100 *eo*le
aro!nd t(e area and inter"iewed t(em according to t(e 3!e'tionnaire4
In t(e '!r"ey I tried to find o!t t(eir *reference' 5 ta'te'2 t(eir *!rc(a'ing (a&it2 are
t(ey &rand loyal or t(ey con'ider t(eir friend' ad"ice or 'ome reference gro!* d!ring
*!rc(a'ing4 I al'o tried to find o!t t(at are t(ey 'ati'fied wit( t(e 3!ality or *re'ent
'tat!re of *rod!ct2 did t(ey want any c(ange in t(e ei'ting *rod!ct4
I al'o inter"iewed 'ome of t(e '(o* owner and di'tri&!tor' and try to find o!t w(at t(e
com*any i' doing to '!'tain t(eir c!'tomer and w(at new c(ange' t(ey are &ringing in
t(eir *rod!ct to gain com*etiti"e ad"antage from ot(er com*etitor'
RESEARCH ')STR!ME)T
,e'earc( in'tr!ment'2 for t(e *!r*o'e of *rimary data collection were 1!e'tionnaire'4
9(e 1!e'tionnaire' were de'igned in two 'et'2 one i' for c!'tomer' and anot(er i' for
'(o*-owner' and di'tri&!tor'4
9(e fir't 'et i' to find o!t a&o!t t(e need' and *reference' of t(e c!'tomer' and
w(at t(ey want from in t(e *rod!ct and al'o t(e le"el of knowledge a&o!t
different *rod!ct' in t(e market4
#econd 'et i' all a&o!t w(at are t(e 'te*' com*any are taking to get a&o!t t(e
information a&o!t (e c(anging *reference' in t(e ta'te and need' of t(e
c!'tomer' and w(at com*any i' doing to '!'tain t(eir market *o'ition a' well
a' to ta* new market4
#'M'TAT'O)S OF ST!(+
14 9(e 'am*le 'iBe may not ade3!ately re*re'ent t(e national market4
24 9(i' 't!dy (a' not &een cond!cted o"er an etended *eriod of time2 it
do not con'ider any c(ange' d!e to c(ange' in t(e '!dden need' of
t(e c!'tomer &eca!'e of 'ome 'ea'onal c(ange or any kind of
fe'ti"al'4
(ATA A)A#+S'S
:or t(e analy'i' of data collected t(ro!g( '!r"ey work2 a 'erie' of 'te*' were followed
w(ic( are gi"en in a c(ronological order
Eac( 3!e'tion of t(e 3!e'tionnaire wa' a''igned code' (coding)
Eac( 3!e'tionnaire wa' *!nc(ed into m'-ecel '(eet t(!' forming a data &a'e
(*!nc(ing)
:!rt(er t(e data wa' analyBed &y !'ing diagram'2 gra*('2 c(art' etc4
9(e gra*(ic rating 'cale and ranking met(od wa' !'ed to mea'!re t(e re'*on'e
and attit!de of t(e c!'tomer4
:inally2 an effort wa' made to etract meaningf!l information from analyBed data2
w(ic( acted a' a &a'e for t(e recommendation'4
MA1OR F')(')GS
The Crisis of Declining Markets
9(ro!g( t(e ninetie'2 t(e :.C7 market' grew at almo't 1$F *er ann!m in "al!e4
#!ddenly2 in 20002 :.C7 market growt( 'talled and t(en declined for t(e net fo!r
year'4 It i' im*ortant to !nder'tand w(y t(i' (a**ened4
9(e ra*id o*ening !* of t(e economy re'!lted in many new a"en!e' of e*endit!re
for t(e con'!merI' growing income4 A '(ar* dro* in intere't rate' from 1-F to -F
led to e*lo'i"e demand for con'!mer d!ra&le' like w(ite good'2 two-w(eeler' and
a!tomo&ile'4 After all2 one co!ld dri"e o!t of a car '(owroom in a .ar!ti -00 wit( a
down *ayment of only ,'4 20004 9(e (ome owner'(i* market grew e*onentially a'
t(e a"erage age of a (ome loan &orrower dro**ed from $0 in 1/// to 30 in 20044
.o&ile *(one owner'(i* and !'age e*loded d!e to it' amaBing life'tyle and
con"enience &enefit' a' well a' lower *rice'4 Entertainment2 ?ei'!re and 9ra"el
'ector' al'o &oomed4
9(e l!re of new a"en!e' of e*endit!re in *rod!ct' and 'er"ice' led to con'!mer'
re'tricting t(eir e*an'e on :.C74 It i' not t(at t(ey &at(ed le'' often or &r!'(ed
t(eir teet( le'' often or indeed wa'(ed t(eir clot(e' le'' often4 B!t t(ey did downtrade
to lower *riced '!&'tit!te' from (ig(er 3!ality &rand'4 :or eam*le2 a con'!mer
&!ying 'i ta&let' of ?! in a mont( went to &!ying t(ree of ?! and t(ree c(ea*er
&rand'4 %r a con'!mer &!ying #!rf Ecel for (er clot(e' mied it wit( a c(ea*er
*owder4 A' a re'!lt of t(i' '(ift in '*ending *attern'2 t(e :.C7 market declined in
"al!e in t(e la't fo!r year' creating a major c(allenge for growt(4
The new Hindustan Lever: Focused on FMCG
In 20002 +$F of o!r 'ale' came from :.C7 &!'ine''e'4 9(e re't came from 'e"eral
non-:.C7 &!'ine''e' w(ic( were not *rofita&le2 and did not offer *ro'*ect' for long-
term leader'(i*4 Be'ide'2 t(ey were a drain on t(e core :.C7 &!'ine''2 &ot( in term'
of re'o!rce and foc!'4
9(ey decided to di'engage from all non-:.C7 or commodity &!'ine''e'4 In all2 we
(a"e di"e'ted and di'contin!ed 1$ &!'ine''e' incl!ding Animal :eed'2 #*eciality
C(emical'2 <ickel Cataly't2 Ad(e'i"e'2 9(ermometer'2 #eed'2 .!'(room' etc4 wit(
'ale' of ,'412+$0 crore' a' in 1///4
9oday t(ey are a foc!'ed on :.C7 com*any wit( o!r &randed &!'ine'' acco!nting
for o"er /0F of 'ale'2 con'i'ting of 3$ &rand' acro'' 20 categorie'4 9(e'e will &e t(eir
main engine' of growt(2 wit( (ig(er le"el' of re'o!rce concentration2 &e it
tec(nology2 *eo*le talent or media '*end4
Building blocks of a strong Foods business
In :ood'2 t(ere i' enormo!' growt( *otential in leading t(e e"ol!tion of con'!mer' to
&randed and *roce''ed food'4 %"er t(e la't few year' t(ey (a"e foc!'ed on *!tting in
*lace t(e &!ilding &lock' of a 'trong :ood' &!'ine''4 ;i'torically t(eir :ood' &!'ine''
wa' fragmented and lacked 'cale4 It wa' often commoditiBed wit( low margin'4 9(ey
recogniBed t(at c(anging food (a&it' wo!ld re3!ire con'idera&le in"e'tment2 w(ic(
t(e c!rrent &!'ine'' 'im*ly co!ld not afford4 9(erefore t(ey di"e'ted t(e non-"al!e
added *art' like 6ana'*ati4 9(ey (a"e con'olidated t(e!ir *ortfolio and im*ro"ed t(e
gro'' margin' &y o"er 13F t(ro!g( *rod!ct mi and co't red!ction4 9(ey (a"e al'o
cleared t(e '!**ly c(ain of all old 'tock and geared !* for fre'( a"aila&ility on '(elf4
9oday2 t(eir :ood' &!'ine'' (a' a (ealt(y gro'' margin and a '!**ly c(ain dri"en &y
fre'(ne''4 9(e :ood' &!'ine'' will now in"e't for growt( t(ro!g( rele"ant inno"ation4
FMCG still offers enormous otential
A' t(e large't :.C7 *layer it wa' !* to t(em to re"er'e t(e downtrading to realiBe it'
tr!e growt( *otential4 9(ey co!ld ac(ie"e t(i' &y rai'ing t(e &ar and &ecoming world
cla'' in w(at t(eir &rand' offered and (ow t(ey worked4 <ot(ing le'' wo!ld do4
Penetration le"el' in 'e"eral of t(e categorie' and con'!m*tion le"el' in all of t(e
categorie' i' low &y any com*ari'on4 Acro'' t(e world2 t(ey are 'eeing a 'trong
correlation &etween income le"el' and t(e 'iBe of :.C7 market'4 %"er t(e net 10
year'2 *er ca*ita income in India i' likely to to!c( C(inaI' c!rrent le"el'4 At t(o'e
le"el'2 t(e :.C7 market will &e o"er ,'41002000 crore' from a c!rrent "al!e of
,'4402000 crore'4 9(i' i' an o**ort!nity t(at t(ey (a"e to 'eiBe4
!ortfolio of "trong Brands
9(eir main c(allenge wa' to re"er'e t(e downtrading in t(e categorie' and re-e'ta&li'(
t(e rele"ance of t(eir &rand' in t(e mind of t(e con'!mer4 In 20002 t(ey (ad 110
&rand'2 many !ndifferentiated and lacking 'cale4 9(ey c(o'e to foc!' on 3$ *ower
&rand' co"ering all con'!mer a**eal and *rice 'egment'4 9(ey are already 'eeing t(e
&enefit'4 #i &rand' H Brooke Bond2 ?ife&!oy2 ?!2 :air 5 ?o"ely2 ,in and @(eel H
(a"e emerged a' mega &rand' in t(e la't fi"e year'2 eac( wit( 'ale' of more t(an
,'4$00 crore'4
Better #alue
9(e fir't 'te* wa' to en'!re t(at t(ey offer world cla'' 3!ality and real differentiation
&acked &y tec(nology to gi"e t(em t(e ad"antage o"er low *riced com*etition4 9(ey
(a"e in"e'ted o"er ,'4400 crore'2 or $F of 'ale'2 in t(e la't t(ree year' to !*grade t(e
&rand'4
In 'e"eral ca'e' t(ey red!ced *rice' to make t(e &rand' more afforda&le4 Better
3!ality and more afforda&le *rice' (a"e increa'ed t(e "al!e to t(e con'!mer4
9(ey (a"e al'o la!nc(ed 'e"eral low !nit 'iBe and *rice *ack' for 'ingle !'e to make
t(e &rand' more acce''i&le to all income gro!*'4 :or eam*le2 t(ey are t(e fir't to
introd!ce a &randed toot(*a'te in a t!&e at ,'4$ and a &randed 3!ality '(am*oo in a
&ottle at ,'4$4
Bigger $ole in Consumers% Lives
Per(a*' t(e mo't 'ignificant c(ange (a' &een to mo"e t(e &rand' &eyond merely
making f!nctional claim' to *laying a &igger and dee*er role in t(e li"e' of
con'!mer'4 9(ey (ad to mo"e from 'elling a 'oa* or a detergent to 'omet(ing far
more im*ortant and central to t(e con'!merI' life4 ;ow often (a"e we (eard 'omeone
'ay2 MA 'oa* i' a 'oa* i' a 'oa*NO %r indeed2 MAll detergent' clean clot(e' a' wellO4
In t(e ca'e of ?ife&!oy2 it wa' only w(en t(ey a''ociated it wit( t(e *romi'e of
(ealt( and *rotection again't di'ea'e t(at it claimed a larger '*ace in t(e con'!merI'
mind4 It mo"ed from &eing a mere 'oa* to a (ealt( e''ential4 9oday ?ife&!oy2 t(eir
olde't &rand2 (a' grown at o"er 1$F for t(e la't t(ree year'4
#imilarly2 in t(e la!ndry market2 #!rf Ecel went well &eyond t(e &enefit of Pgreat
cleanI &y 'a"ing two &!cket' of water wit( e"ery wa'(4 Imagine t(e im*ortance of
t(at &enefit to con'!mer' in citie'2 w(o often get r!nning water for only a co!*le of
(o!r' a day4 #!rf Ecel i' one of t(eir fa'te't growing &rand' today4
Bot( ?ife&!oy and #!rf Ecel (a"e '!cceeded &eca!'e t(ey are rele"ant to two key
concern' of t(e Indian (o!'ewifeL family (ealt( and t(e 'carcity of water4
In addition to t(e growing con'cio!'ne'' of (ealt(2 con'!mer' today are looking for
way' to look good and feel good 'o t(at t(ey can get m!c( more o!t of life4 In '(ort2
con'!mer' are 'eeking 6itality in t(eir li"e'4 9(eir *ortfolio of 3$ *ower &rand' i'
!ni3!ely *o'itioned to offer n!trition2 (ygiene and *er'onal care &enefit' and t(ere&y
deli"er 6itality4
Technolog&' the (e& Differentiator
9(eir &rand' and 'o!nd !nder'tanding of t(e local con'!mer are '!**orted &y a world
cla'' ,e'earc( and =e"elo*ment ca*a&ility4 9(ey (a"e o"er 200 of t(e &rig(te't
'cienti't' and tec(nologi't' &a'ed in India4
9(eir recent reorganiBation le"erage' t(e talent *ool from acro'' 1) glo&al tec(nology
centre'2 of w(ic( fo!r are in India4 In all2 t(ey (a"e o"er 42000 (ig( 3!ality mind'
acro'' >nile"er working relentle''ly to *ro"ide new &enefit' t(at make a real
difference to t(e con'!mer'4
Winning with Customers
;ind!'tan ?e"er (a' (i'torically (ad a 'trong &ond wit( it' c!'tomer'4 9(ey (a"e
'trengt(ened t(i' and rein"ented t(e way t(ey manage t(eir di'tri&!tion c(annel' and
t(eir c!'tomer'4 9(e 'ale' 'tr!ct!re (a' &een tran'formed to le"erage 'cale and &!ild
e*erti'e in 'er"icing .odern 9rade and ,!ral .arket'4 9(ey (a"e al'o de-layered
t(eir 'ale' force to im*ro"e t(e re'*on'e time' and 'er"ice le"el'4
9(eir c!'tomer' are 'er"iced on contin!o!' re*leni'(ment4 9(i' i' *o''i&le &eca!'e of
I9 connecti"ity acro'' t(e etended '!**ly c(ain of a&o!t 22000 '!**lier'2 -0 factorie'
and +2000 'tocki't'4 9(ey (a"e al'o com&ined &ackend *roce''e' into a common
#(ared #er"ice infra'tr!ct!re2 w(ic( '!**ort' t(e !nit' acro'' t(e co!ntry4 All t(e'e
initiati"e' toget(er (a"e en(anced o*erational efficiencie'2 im*ro"ed t(e 'er"ice to t(e
c!'tomer' and (a"e &ro!g(t !' clo'er to t(e market*lace4
)ur *corns: +nvesting in our Future
In t(e *!r'!it of growt(2 t(ey (a"e al'o &eg!n to n!rt!re 'ome acorn' for t(e f!t!re4
9(e'e are &ot( new &!'ine''e' and new way' of engaging wit( con'!mer'4
9(eir entry into @ater P!rifier'2 t(ro!g( P!reit2 '(ow' great *romi'e4 P!reit deli"er'
100F *rotection again't all water-&orne di'ea'e'4 It *ro"ide' water w(ic( i' a' 'afe a'
&oiled water2 wit(o!t needing electricity or contin!o!' ta* water '!**ly4 At 1+ *ai'e
*er litre2 it i' etremely afforda&le for t(e common man4 9(ey (a"e la!nc(ed it in
9amil <ad! and are fine-t!ning all a'*ect' of t(e &!'ine'' 'y'tem &efore a *(a'ed
national la!nc(4
In !r&an India2 ;ind!'tan ?e"er <etwork (;?<) i' t(eir direct 'elling initiati"e
'elling a '*ecial range of *rod!ct'4 It already reac(e' 12400 town' wit( o"er 3 lak(
con'!ltant'4 Be'ide' reac(2 ;?< ena&le' direct interaction wit( con'!mer' and
c!'tomi'e' 'ol!tion' for t(em to gi"e t(em a com*lete &rand e*erience4
)ur !eole , )rganisation
9(ey (a"e re'tr!ct!red t(e com*any2 integrating eig(t Profit Centre' into two
=i"i'ion' H ;ome and Per'onal Care (;PC) and :ood'4 9(e re'!lt i' a 'im*ler and
leaner organi'ation2 le'' (ierarc(ical wit( fewer le"el' and greater em*owerment4 9(i'
(a' eliminated com*leity and '*eeded !* deci'ion making4 9oday t(e com*any i' far
more yo!t(f!l in attit!de and '*irit4 9(ere i' greater o*enne'' and tran'*arency4
The Transformation: +nvestment in the Future
9o en'!re t(at ;ind!'tan ?e"er remain' com*etiti"e in t(e long-term2 t(ey (a"e made
'ignificant in"e'tment' in *rod!ct 3!ality2 *ricing and marketing4 A' mentioned
earlier2 t(e in"e'tment in *rod!ct 3!ality alone (a' &een in ece'' of ,'4 400 crore'2 or
$F of o!r 'ale'4
In addition t(ere (a' &een t(e co't of defending t(eir market *o'ition4 ,ecently an
international com*etitor attacked t(eir la!ndry &!'ine'' led &y a *rice red!ction of a'
m!c( a' $0F4 9(ey acted wit( '*eed and determination le"eraging all t(eir *a't
e*erience in India and internationally4 9(ey (a"e &een a&le to f!lly *rotect t(eir
market leader'(i* and '(are2 al&eit 'acrificing '(ort-term *rofit4 9(ey made t(i'
nece''ary trade-off a' market '(are i' t(e &e't mean' of '!'taining f!t!re *rofit4 %"er
time2 t(eir 'tronger market *o'ition' will '!rely lead to greater long-term *rofit4
=e'*ite t(e'e 'ignificant in"e'tment' to 'trengt(en t(e long-term com*etiti"ene'' and
t(e co't' of defending t(e 'trong market *o'ition2 t(ey 'till remain one of t(e mo't
*rofita&le com*anie' in t(e co!ntry4
CONCLUSION
In recent year'2 t(e :.C7 'ector declined d!e to downtrading4 Al'o &eca!'e of
*re'ence of large n!m&er of com*anie' trying to 'eiBe t(i' o**ort!nity2 t(i' force
t(e old ;?? for t(e c(ange and t(!'2 t(eir tran'formation (a' re'!lted in a new
;??2 w(ic( (a' '!cce''f!lly faced t(i' c(allenge and re"er'ed t(i' trend4 It (a'
done 'o &y '!&'tantially 'trengt(ening t(eir &rand' and &!ilding ca*a&ilitie'4 9(i'
(a' already &eg!n to yield &enefit' and t(ey are ret!rning to growt(4 6ol!me
growt( i' &eing followed &y "al!e growt(2 w(ic( in t!rn i' &ringing *rofit growt(4
India i' one of t(e mo't eciting market' offering great *otential4 %"er t(e net 10
year'2 t(e *er ca*ita income in India i' likely to do!&le4 In :.C72 t(ere i' an
o**ort!nity to catalyBe *enetration2 increa'e !'age2 and !*grade con'!mer'4 A' a
re'!lt2 t(e :.C7 market i' e*ected to grow to o"er ,'41002000 crore' from it'
c!rrent &a'e of ,'4402000 crore'4
9(e new ;ind!'tan ?e"er 'ee an eciting o**ort!nity for growt(4 9(ey (a"e 3$
*owerf!l &rand' co"ering all 'egment'2 wit( leading market *o'ition' in mo't4 9oday2
t(e'e are 'tronger and more rele"ant to t(e con'!mer t(an e"er4 9(e *eo*le are
energiBed &y t(e 'cale of t(e o**ort!nity and determined to 'eiBe it4 9(e 'cale of t(e
&!'ine'' and o*eration' gi"e' t(em t(e re'o!rce' needed4 9(ey are deli"ering good
'er"ice' and t(e c(ange' t(ey &ro!g(t in t(e *rod!ct' are well taken &y t(e c!'tomer'2
&y t(i' t(ey are generating '!'taina&le *rofita&le growt(4
&'&#'OGRAPH+
&OO/S
Got(ari2 C4,42 200$ ,e'earc( .et(odology2 @i'(wa Praka'(an2 India4
Gotler2 P(ili*4 200$2 .arketing .anagement2 Prentice (all India4
.arketing .anagement2 IC:AI >ni"er'ity Pre''
Mg6ines
B!'ine'' 9oday
In"e'tor' India
B!'ine'' @orld
Economic 9ime'
B!'ine'' #tandard
*E&S'TES
www4(ll4com
www4fmcg4com
www4economictime'4com
www4marketwatc(4com
>!EST'O))A'RE
: rom C!'tomerI'
14 ;ow m!c( i' yo!r incomeA
a4 Q,'4102000
&4 ,'4102000-,'42$2000
c4 ,'42$2000-,'4$02000
d4 R,'4$02000
24 ;ow m!c( do yo! in"e't on con'!m*tionA
a4 Q30F
&4 30-)0F
c4 )0--0F
d4 R-0F
34 =!ring *!rc(a'e w(at in infl!ence yo!r *!rc(a'eA
a4 Price
&4 1!ality
c4 Packaging
d4 E*eriment
e4 Infl!ence &y ot(er'
44 =o yo! *refer any *artic!lar &randA ( If Pye'I w(ic( &rand )
a4 8e'
&4 <o
$4 =o yo! know a&o!t t(e *re'ence of different *rod!ct' of different
com*anie' in t(e 'ame categoryA
a4 8e'
&4 <o
)4 ;a"e yo! e"er tried t(emA
a4 8e'
&4 <o
+4 Are yo! 'ati'fied wit( t(e *rod!ct' yo! are !'ingA
a4 8e'
&4 <o
-4 =o yo! want any c(ange' in t(e *rod!ctA
a4 8e'
&4 <o
:rom #(o*-owner' 5 di'tri&!tor'
14 @(at i' t(e market '(are of ;>?A
24 ;ow m!c( i' t(e con'!m*tion of ;>?I' *rod!ct wit( re'*ect to t(e
*rod!ct' of ot(er com*anie'A
34 =o yo! t(ink c!'tomer' are 'ati'fied wit( t(e *rod!ct' and 'er"ice' yo! are
offeringA
44 @(at are t(e way' to get t(e feed &ack from c!'tomer'A
$4 %n w(ic( *art c!'tomer' are really not 'ati'fiedA
)4 ;ow do yo! find t(e c(anging ta'te' and *reference' in c!'tomer'A
+4 @(at i' ;>? i' doing to tackle t(i' *ro&lemA

T.e end